3 Warning Signs Your Business Has Outgrown QuickBooks
If your growing business is struggling with the limitations of QuickBooks, it might be time to consider upgrading to a different accounting platform. QuickBooks is a popular accounting solution for small businesses, but it has some major limitations which can gradually constrict your business growth and limit financial visibility. In this blog, we identify three major signs that you’ve outgrown QuickBooks. In contrast to each of these limitations, we also explain how a more scalable accounting solution can help your business maintain healthy financial accounting.
1. You need more detailed data tracking
QuickBooks only offers one reporting dimension, which is called “class.” This makes it very hard to track your data in more than one way, and it’s very error-prone. For example, if you want to track a sale based on which location and which salesperson initiated it, this simply isn’t possible in QuickBooks. In the “class” dimension, you have to choose which is more important and enter only one of the metrics you want to see. Because of this, many businesses find themselves manually creating reports in Excel as a way to include more data, which can consume way too much time and cause a whole other set of issues.
Tip: With a more sophisticated, cloud-based system such as Sage Intacct, it’s easy to monitor more data – simply add another dimension field whenever you want to track something else. This means that you could track sales based on location, salesperson, type of sale, and any other relevant metric. In addition, all of this can be added into customized reports and performance-based metrics and visual dashboards. By upgrading to a scalable accounting system, you can save countless hours and gain real-time visibility into all areas of your finances and business.
2. You’re using separate QuickBooks versions for multiple entities
QuickBooks is not a multi-entity accounting solution. This means that if you have multiple accounting entities, you have to log out and log back in to a different version of QuickBooks each time you deal with a different entity. Wow, does this make it inefficient and frustrating for a business with more than one entity! In addition to the inconvenience of logging in and out, you are also forced to manually consolidate in Excel if you want to see a full view of the entire company. This can be extremely time-consuming, result in unreliable or incomplete data, and simply put—drive you crazy.
Tip: By upgrading to a multi-entity accounting software, you can create multiple entities within the same system. This means that consolidations are automated, allowing you to access data with just the click of a button rather than hours of time-consuming manual work. In addition, the ability to track more detailed information and eliminate information silos will result in you being able to make better business decisions.
3. You need greater security and control
In QuickBooks, you can’t restrict user access to any part of the system, which means you have to give any user access to all information, not just something specific you want them to see. In addition, any user can make changes throughout the system. Once your business has more employees or more complex finances, this lack of security and control creates a significant risk of costly errors or outright fraud. Plus, you can easily get confused with version control which means you can be looking at stale or incorrect financials.
Tip: Higher level accounting systems allow for better security and are fully GAAP-compliant. It’s possible to restrict what each individual user has permission to view and separately control what that user can edit.
In addition, GAAP-compliance means that important information can’t be deleted or changed without leaving a change record in the system.
Think you might be able to realize significant benefits with a new accounting platform?
If you’re interested in upgrading from QuickBooks, this might also be a good opportunity to consider outsourcing your accounting . As a part of this process, your company’s finances will be moved to a more modern cloud-based accounting solution that is setup and maintained by a team of financial experts. It’s a chance to upgrade your technology and redesign your processes while bringing on a team of experts to manage it for you on a day to day basis. If you’re interested in learning more about outsourced accounting, contact us to find out how we can help your business succeed!